Judge tells Microsoft, feds to settle case

WASHINGTON -- Citing the recent terrorist attacks, the new judge in the Microsoft antitrust case on Friday ordered both sides to participate in intensive negotiations to settle the four-year legal battle. "There's no reason this case can't be settled," the judge said.

U.S. District Judge Colleen Kollar-Kotelly gave the Justice Department and Microsoft until Nov. 2 to reach a deal. She asked both sides to negotiate "24 hours a day, seven days a week."

In a written order after the hearing, the judge said the government and Microsoft should save the money it spends in litigation and set an aggressive timetable.

"In light of the recent tragic events affecting our nation, this court regards the benefit which will be derived from a quick resolution of these cases as increasingly significant," Kollar-Kotelly wrote. "The court cannot emphasize too strongly the importance of making these efforts to settle the cases and resolve the parties' differences in this time of rapid national change."

During the hearing, the judge made clear several times she thought the case had gone on long enough.

"I believe this case should be settled," she said at the outset of a scheduling conference. Later she added, "If everyone is reasonable and acts in good faith, there is no reason this case can't be settled."

No mediator so far

Even though both parties agreed that they wouldn't need a mediator -- a tactic that had already failed once -- Kollar-Kotelly gave them until Oct. 12 to settle on their own. Otherwise, she will appoint someone to oversee the talks.

If Microsoft and the government still can't agree, the judge set a schedule for new court proceedings starting in November to determine what penalty Microsoft should face for violating antitrust laws.

The government has made clear it no longer intends to seek a break up of Microsoft, opting for lesser penalties that include restrictions on Microsoft's business practices.

The two sides have been participating in some settlement discussions, but little progress has been reported. Some meetings were scuttled after the Sept. 11 terrorist attacks in Washington and New York.

Microsoft added a new lawyer to its team this week, Dan K. Webb of the Chicago firm Winston & Strawn. While working for the government, Webb prosecuted Adm. John Poindexter in the Iran-Contra scandal.

In private practice, Webb defended the tobacco industry in liability cases and General Electric in a diamond price-fixing trial.